De La Rue has revealed that it will not appeal the decision by the UK Government to hand a contract to print the iconic blue British passports to a French rival.

The company has printed UK passports from its Team Valley factory, in Gateshead, for the last 10 years but last month the Government contract was issued to Franco-Dutch firm Gemalto.

The decision caused wide-spread controversy as the contract will involve EU-headquartered Gemalto printing the first batch of blue passports after Brexit. It could also put around 200 Gateshead jobs at risk.

At the time of the decision De La Rue boss Martin Sutherland said he was “disappointed and surprised” that an “icon of British identity” would be manufactured in France.

The UK firm then said it would appeal the tender decision in a bid to win back the work, and even went as far as to say it could take the Government to court.

However, De La Rue has now reversed its decision and said it will no longer be lodging an appeal.

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The UK Government has defended its decision to give the contract to Gemalto claiming it will save UK taxpayers around £120m. But despite the cost saving implications members of UK have rallied in support of De La Rue with 266,000 people adding their signature to a petition calling for the Home Office to give the contract to the British firm.

Trade union Unite has came out in support of the passports being made in the UK and said the announcement represents a “dark day for manufacturing”.

Louisa Bull, Unite national officer, said: “This news will come as a bitter blow to De La Rue workers who now face an uncertain future. Workers will feel let down that the company is not prepared to fight the government’s decision to ship the production of the new blue passport overseas.”

She added: “Unite will be working closely with De La Rue to seek assurances on jobs as well as supporting workers through these uncertain times.

“It need not be like this though. Unite and our members are mobilised and prepared to fight the government’s decision which represents a dark day for UK manufacturing.

“Theresa May needs to wake up to the anger her Government’s short sighted job destroying decision has generated and intervene to back UK passport workers by ensuring Britain’s blue passports are made in the UK.”